2015 (3) TMI 540

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....: "(a) Whether assessee was right in computing deduction u/s 80HHB? (b) Whether assessee was entitle to deduction for Retention Money?" Re. Question (a): 3. The appellant was interalia engaged in the business of executing projects outside India as defined in Section 80HHB of the Act. The appellant was executing foreign projects i.e. two in Iran, six in Libya and one in Thailand. The appellant for the purpose of computing its deduction under Section 80HHB of the Act computed the same project wise and claimed deduction only in respect of individual projects on which profit was earned without setting of losses incurred in certain individual projects. This deduction was claimed under Section 80HHB of the Act at Rs. 1 Crore keeping i....

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....icable to the present facts. It interalia held for the purposes of computing the gross total income, the entire result of all projects i.e. both profit making and loss making foreign projects are to be taken into account. However while computing the deduction under Section 80HHB of the Act, the same has to be worked out for each project separately without taking into account the losses suffered on other projects. However the overall deduction available would be restricted in terms of Section 80A(2) of the Act to the gross total income returned by the assessee. 6. The revenue being aggrieved is in appeal before us. We find that the issue arising in this question is no longer res integra. The question stands concluded by the decision of th....

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....the assessee the benefits of Section 80HHB in respect of each unit?" This Court in conclusion held as under: "In such circumstances, and considering the provision in question and the order of the Tribunal, we do not think that the Appellate Tribunal was in error in holding that the assessee was entitled to the deduction under Section 80HHB in respect of each project instead of netting up of profits from all the overseas projects. In such circumstances, the Tribunal was in no error in directing the Assessing Officer to allow the deduction as claimed by the assesee without setting off all the losses suffered in other foreign projects. In such circumstances, the reference is answered in favour of the assessee and against the Revenue. The....